Japanese super-long-term government bonds see first foreign capital outflow since 2024
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```htmlAccording to Golden Ten Data on May 20, data from the Japan Securities Dealers Association on Wednesday showed that in April, overseas investors had a net sale of 81.3 billion yen (approximately $512 million) in super long-term Japanese government bonds, marking the first net outflow since December 2024. Following the normalization of the Bank of Japan's monetary policy, overseas investors have increased their influence in the bond market. Rising borrowing costs keep policymakers on alert; Finance Minister May Katayama hinted at considering market conditions when discussing a supplementary budget. Shinichiro Monden, Head of Japan FX and Rate Strategy at Barclays, stated that foreign selling “highlights the vulnerability of the Japanese bond market.” “Coupled with concerns about fiscal expansion and the central bank lagging the curve, the sell-off is pushing up yields.” This week, Japan’s benchmark 30-year government bond yield rose to its highest level since its debut in 1999. Meanwhile, as traditional investors in super long-term bonds, life and non-life insurance companies had a net purchase of 327.2 billion yen in such bonds last month, becoming net buyers for the first time since July last year.```
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